Question

1) A $1,000 face value bond currently has a yield to maturity of 8.22 percent. The bond matures in 7 years and pays interest semiannually. The coupon rate is 7.5 percent. What is the current price of this bond? A) $962.25 B) $917.96 C) $1,100.13 D) $848.01 E) $1,105.26

2) JetNet bonds have a face value of $1,000, a coupon rate of 6.5 percent, semiannual interest payments, and mature in 11.5 years. What is the current price of these bonds if the yield to maturity is 7.36 percent? A) $918.27 B) $1,151.30 C) $934.04 D) $999.20 E) $1,120.85

3) LeXnews has 15-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest semi-annually and have a yield to maturity of 4.03 percent. What is the coupon rate? A) 3.80 percent B) 3.15 percent C) 4.15 percent D) 3.60 percent E) 4.10 percent

Answer 1